7. How would you value: (a) Stock issued for property. (b) Treasury stock.
8. How is the redemption or reduction of capital stock handled on the books? Explain fully.
9. How would you value: (a) Dividend stock. (b) Bonus stock.
10. How should unissued and treasury stock be shown on the balance sheet?
11. What is the problem of a preferred stock covered by a redemption contract imposing definite dates of redemption on the company?
Chapter XXII
1. What are profits? Distinguish between the economic, legal, and accounting uses of the term.
2. What two methods are used to determine profits?
3. How are profits related to the problem of valuation?
4. What effect have asset losses on profits? Discuss fully.